ANALYSIS - Solar rally seen far off as subsidy fears mount

First Solar Inc (FSLR.O: Quote, Profile, Research, Stock Buzz) has been a relative bright spot in the industry. Shares of the thin film solar maker, which were trading at $275.25 on Thursday, were up 92 percent from their 2008 low of $143.31, hit in January, and had declined less than 1 percent in the last three weeks.

Many say SunPower, Suntech and others now look positively cheap. As of Wednesday's close, SunPower was trading at about 28 times projected 2008 earnings, while Suntech had a multiple of about 10. At the beginning of 2008, SunPower's valuation was about 60 times 2008 earnings, while Suntech's was 38.

American Trust's Callaghan is one investor who is holding out for more.

Looking for cheaper ways to invest in solar than through cell and panel makers with lofty valuations, Callaghan has turned to Swiss solar equipment maker Meyer Burger Technology AG (MBTN.S: Quote, Profile, Research, Stock Buzz), which trades at about 18 times 2008 earnings, and its U.S. rival, Applied Materials Inc. (AMAT.O: Quote, Profile, Research, Stock Buzz).

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